Energy Independence US Treasury Savings Bonds

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Comment by Mike Anthony Fernald Sr. on April 2, 2009 at 3:58am

By Stephen Pizzo, News for Real
Posted on April 1, 2009, Printed on April 1, 2009
http://www.alternet.org/story/134392/I

I voted for Barack Obama, and I continue to wish him nothing but success. But I have to admit his and Tim Geithner's solution to the banking crisis is exactly the wrong solution. The administration seems to believe the best thing to do is to throw the drunken "money center" bankers into detox, hose them off and put them back in the game.

It's a bit like asking ExxonMobil to run the Environmental Protection Agency, or appointing Charles Keating to head the General Accounting Office.

The strange thing is that others in the administration, particularly those tasked with straightening out the auto industry, are taking the opposite -- and correct -- tact. They fired the head of GM and cleaned out GM's board of directors for good measure.

That's how you begin fixing stuff that's broke -- first you get rid of the folks who broke it. What you don't do is hand them billions of free bucks, a hearty slap on the back and a rousing "Now, go get 'em tiger!" (Because they will.)

But that's precisely what the administration is doing for America's failed money center banks. The nation's largest banks are often referred to as money market banks or money center banks.

In addition to the traditional markets, to be a money center bank today means to have a global presence as well as heavy involvement in wholesale banking with clients including many retail banks and large corporations. Citibank, JPMorgan Chase and Bank of America fit this description. Here's a list of America's leading money center banks.

So, it appears we will have to take matters into our own hands. By "we" I mean anyone with a checking account, savings account or certificates of deposit. That, my friends, would be you. You are up at bat, and we're counting on you.

What we need to do is force the administration to do to these tumorlike institutions -- currently hiding behind the myth they are "too big to fail" -- what they just did to GM. Tell them that, since taxpayers are now major stakeholders, they must fire their senior management and either clean up the mess they made or face immediate seizure and liquidation.

And just how are you going to force such a change? It's just this simple:


1) If you bank with any of these money center banks, withdraw your funds immediately

2) Go to this site and find an independent community bank in your area and deposit your funds there instead. (Credit unions are another excellent and safe alternative to banking a money center bank.)


That's it. That's the whole enchilada. The outflow of what bankers call "retail funds," if large enough, will become the final straw that breaks the backs of these bulls in our fiscal china shop.

But, you ask, will my money be safe in a small, community bank?

Of course it will be safe, just as safe, maybe safer, than it was at Citibank or BofA. First, community banks are covered by exactly the same deposit insurance as money center banks. But beyond that, community bankers are community bankers. They live in the communities they serve. They know their towns. And, most importantly, they know their borrowers.

Community banks are, for the most part, the last remaining healthy sector of American banking. If they are hurting at all, it's because their customers are losing their jobs, not because they lent a godzillion dollars to some fly-by-night schemer or invested in anything with an AIG logo on it.

A good community banker's definition of a toxic asset is more along the lines of Farmer Jones' wrecked pickup on which the bank holds the paper.

So, if you are customer of one of those money center banks, institutions currently hoarding hundreds of billions of dollars in taxpayer bailout funds, walk right in, sit right down and tell them you want the dough that still has your name on it, and you want it now.

Otherwise these tumor-banks will survive Geithner's weak-kneed chemo treatments to emerge intact to pillage another day.

I don't know if what I am suggesting is legal or not. I remember back in 1983, when I wrote my first story about how a savings and loan was using deregulation to put taxpayers at risk. The thrift's lawyers contacted me at the paper and warned me that they were going monitor withdrawals and, if there were a lot of customers withdrawing their money, they ask that I be arrested and charge with breaking a federal law -- still on the books -- that made it illegal to spark a run on a bank.

I took my chances then, and was proved right. I'll take my chances again. So, run baby. Run.

Stephen Pizzo is the author of numerous books, including Inside Job: The Looting of America's Savings and Loans, which was nominated for a Pulitzer.

© 2009 News for Real All rights reserved.
View this story online at: http://www.alternet.org/story/134392

Comment by Richard Barnard on April 1, 2009 at 9:55am

Good luck and God Bless you and all of our Warriors there.

Richard

Comment by Michael Shawn Kendall on March 31, 2009 at 10:22pm

Jack and Christopher/Daniela,
Thanks for your participation in the group!
I am scheduled to fly out to the middle east on Saturday. I'm just not sure how involved I will be able to be in the group. It may be on and off activity depending on what is going on for me.
Best Regards,
Mike Kendall

Comment by Jack Costantino on March 31, 2009 at 8:30pm

BE 500 PEOPLE!

The 3 day Pickens Virtual March on Washington is ON! Among other actions, I’m encouraging everyone to send a single eMail EVERY DAY. In political arithmetic that is counted as 500 in the minds of our elected officials.

YOU ARE 500 PEOPLE. Every eMail legislative aides receive is statistically calculated to represent 500 people in a congressional district who feel exactly the same way...even if they didn’t actually write. That’s absolute fact. It’s a simple thing to do, but it has tremendous impact.

Please go to Find your District Congressman and enter your zip code in the box on the far right side. You will be directed to a page at CONGRESS.ORG that automatically finds and allows you to eMail your elected officials on the federal and state level. Copy and paste the following text:

--------------------------Beginning of Letter ---------------------------------------------------

(Subject Box:) Support the Pickens Plan

(Issue Area Box: Choose Energy)

(Editable Text Area:)

I am a constituent living in (FILL IN CONGRESSIONAL DISTRICT OR TOWN) who supports the Pickens Plan and asks you to do the same. America’s dependence on foreign oil depletes our economy, threatens our national security and negatively impacts our environment.

Please sign the Pickens Pledge and support conservation, education and the development of clean energy at every possible opportunity. It’s important for our economy and the well being of generations to come.

Thank you for your thoughtful consideration.

------------------------End of Letter ------------------------------------------------------------------

The rest of the options are your own choice. Click the “Send Message” button at the bottom of the page.

This type of appeal makes our leaders take notice, and I urge every one of you to BE 500 PEOPLE today, because you really are. You have power that can be delivered with a few clicks of your finger. Don’t wait…do it now!

Thank you for your support.

Jack Costantino, DL, NJ-11
NJDLD

Comment by Christopher and Daniela Rabalais on March 31, 2009 at 7:52am

"Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever has." -- Margaret Mead

"Vision without action is merely a dream. Action without vision just passes the time. Vision with action can change the world." -- Joel Barker

"The probability that we may fail in the struggle ought not to deter us form the support of a cause we believe the be just." -- Abraham Lincoln

Comment by Christopher and Daniela Rabalais on March 26, 2009 at 7:38am

I believe that developing a new energy economy based on alternate fuels is not only a clear path out of our critically dangerous dependence on imported petroleum but a solid road to economic recovery and global prosperity. America needs a new exportable industry to rebirth our vibrant entrepreneurial spirit while renewing the environment. While it is true that drastic changes in Washington policy are needed to see this through, each of us must play an important personal role in the process. We need to see the world and our lives through a different lens. Conservation starts in our home with our families and our neighborhoods. It can begin with steps as simple as replacing incandescent bulbs with compact fluorescents through active home power management and developing a habit of comprehensive recycling. From the food we consume to the gasoline we burn, everything is composed of energy. Saving energy is good for our pocketbooks and for the planet. Through developing, integrating and promoting a comprehensive alternative energy plan with the Obama-Biden Administration alongside our domestic petroleum industry and active reforestation efforts, we can rebuild the fabric of our Nation with healthy, productive domestic industries and employment and export these technologies and philosophies to the rest of the World. Everyone benefits everywhere. We are approaching the dawn of a new age.

Comment by Christopher and Daniela Rabalais on March 23, 2009 at 6:06pm

From Senator Kay Bailey Hutchison

Thank you for contacting me regarding H.R. 1, the American Recovery and Reinvestment Act of 2009. I welcome your thoughts and comments on this issue.

Our economy is facing dramatic challenges. Financial conditions are rapidly evolving, creating volatility and uncertainty for businesses, small and large, across the country. Tightening credit markets, mounting job losses, and decreased consumer spending are wreaking havoc on the bottom lines of small businesses and the savings of every American household.

In response to the economic crisis, Congressional Democrats unveiled H.R. 1, the American Recovery and Reinvestment Act of 2009, also known as the Stimulus bill. After several weeks of debate, a $787 billion package filled with an array of funding for government healthcare, education, energy, and infrastructure programs was agreed upon.

The Stimulus bill passed on a party line vote, with all but three Senate Republicans opposing the bill, and was signed into law on February 17, 2009. I strongly opposed H.R. 1 for three primary reasons.

First, I believe the most effective way to stimulate the economy is to leave more money in taxpayers’ pockets. Instead of providing significant tax cuts, the vast majority of the Stimulus bill focused on dramatically expanding government programs. In fact, tax cut provisions in H.R. 1 only represented 27 percent of the total bill. Furthermore, the few tax relief provisions that were included are likely to be ineffective. The largest tax relief provision in the bill, the Making Work Pay Credit, is a $400 tax credit for individuals and an $800 tax credit for couples that will be distributed though decreased paycheck withholdings. For individuals, this amounts to only an additional $7.69 per week. This meager effort will not stimulate our economy out of the current recession.

Second, I believe any stimulus bill should attempt to expend funding immediately and effectively. Instead, in this bill, of the $311 billion in government discretionary spending, only 11.3 percent, or $35 billion, will be spent in 2009. The remainder of the spending will occur over the next ten years. Stimulating our economy over ten years will not bring immediate relief to those feeling the impact of the economic crisis today.

Lastly, this bill will saddle Americans with a significant amount of additional debt. Our national debt is currently above $10.9 trillion dollars. It is irresponsible for our government to wastefully spend taxpayer dollars by the billions when our nation is operating in the red. In addition, it is unfair to place this mounting financial burden on America’s future generations. I could not support a $787 billion bill that will not provide much-needed tax relief; will not spend the funding immediately and effectively; will not create sustainable, private-sector jobs; and will not address the mounting debt facing our country.

The economic downturn has had a pronounced impact on Texas families and businesses, and I would have supported stimulative measures that were balanced, reasonable in size, and targeted specifically to job creation, keeping people in their homes, and overall economic growth. A better proposal would have emphasized tax relief so that individuals and businesses can have more capital to inject into the economy, and it would have guarded against massive government expansion. History teaches that excessive spending may prolong a recession. Moving forward, Congress must carefully consider the long-term consequences of a fiscal policy premised on borrowing and spending. As Congress continues to consider legislation to address the financial crisis, you may be certain I will keep your thoughts in mind.

For more information on the American Recovery and Reinvestment Act of 2009, please visit www.recovery.gov.

I appreciate hearing from you. I hope you will not hesitate to contact me on any issue of concern to you.

Sincerely,
Kay Bailey Hutchison
United States Senator

284 Russell Senate Office Building
Washington, DC 20510
202-224-5922 (tel)
202-224-0776 (fax)
http://hutchison.senate.gov

Comment by Christopher and Daniela Rabalais on March 23, 2009 at 8:37am

Exactly, Mike.

Comment by Mike Anthony Fernald Sr. on March 23, 2009 at 7:39am

I agree with you Chris.

It is that Simple :o}

This is what I see wrong with a Lot of Folks with Wealth & Power, We teach our Kids to share but they see something totaly differant as they grow up in this world.

My 2 cents.

Comment by Christopher and Daniela Rabalais on March 23, 2009 at 7:08am

Serious consideration should be given to working
directly with the petroleum industry to transition
through natural gas into renewable fuels.

I lay awake at night wondering why this approach
isn't being pursued.

Make them a friend instead of an enemy. There will
be no obstacle of any significance with their alliance.
Share the future and the profits. It is that simple.

Christopher P. Rabalais DL TX-02

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